Scrap prices under pressure from both supply and demand sides

Wednesday, 17 July 2019 18:18:43 (GMT+3)   |   Istanbul

No new scrap deal has been heard in the Turkish market which has been quiet since last week after the ex-Europe scrap transaction concluded for HMS I/II 80:20 scrap at $288/mt CFR Turkish port. Market sources state that Turkish steel mills are not very active as regards sales due to the weakness of international long steel demand in summer and also given the mills’ planned maintenance works. Under the current circumstances, SteelOrbis has been informed that Turkish mills are expecting lower scrap quotations as their demand for scrap has decreased, but scrap suppliers are drawing attention to the rises in scrap collecting costs, though no problem is experienced on the supply side, and so they are unwilling to cut their scrap export prices.

It is understood that in the current week ex-US scrap cargoes for HMS I/II 80:20 scrap offered in the range of $298-300/mt CFR Turkish port are mentioned in the market, but some US scrap suppliers prefer to wait and have withdrawn their offers. SteelOrbis has been informed that ex-Europe scrap cargoes are offered at $290-292/mt CFR Turkish port, while suppliers in the Baltic region prefer not to give any offers but buyers’ price expectations for scrap from this region are in the range of $290-295/mt CFR Turkish port.

On the other hand, it is heard that Turkish mills have concluded deals for small volumes from the Adriatic, with Romanian HMS I/II 80:20 scrap being transacted at $280-282/mt CFR Turkish port. On the other hand, ex-Black sea port Russian scrap prices are expected to be at $285-290/mt CFR Turkish ports, but Russian suppliers are also unwilling to give any offers to Turkey and have adopted a wait-and-see stance.

Consequently, this week, although there has been no supply shortage and there has been some demand in the market, SteelOrbis has heard that Turkish mills have tried to push for offers lower the current levels; however, scrap suppliers have refused to reduce their prices and have preferred to monitor the market. The market is currently quiet amid pressure from both the supply and demand sides and neither buyers or buyers are in a hurry to conclude transactions. Market players are expected to clarify their strategies by the end of this week or by early next week.

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